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Rchopra

XRP DISTRIBUTION UPDATE

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Hi Guys. I just saw bit of information on XRP Distribution strategy by Ripple. I think this is updated information because i did not see it before at XRP Portal page.

If market conditions permit, we expect our company to hold approximately 50 billion XRP by the end of 2021. This schedule is indicative and discretionary.

TOTAL XRP HELD BY RIPPLE:64,439,207,292

TOTAL XRP HELD BY OTHERS:35,558,046,921*

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Wow.

One question is are they holding 50 billion forever or will they continue to distribute after?

Thoughts?

Maybe the constrained supply will increase the price?

Quote

If we distribute XRP with these goals in mind, over time we expect to see an increase in demand for XRP that more than offsets the additional supply we inject into the market. Said another way, we will engage in distribution strategies that we expect will result in a stable and strengthening XRP exchange rate against other currencies.

 

Edited by HeyA

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That's something new to me. That line was not there so far, if I recall correctly. 

What does that mean? It looks like Ripple is in no hurry to speed up XRP distribution...

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1 minute ago, Duke67 said:

That's something new to me. That line was not there so far, if I recall correctly. 

What does that mean? It looks like Ripple is in no hurry to speed up XRP distribution...

That's exactly what it means. I love it. It means they intend to sell their honey expensive.

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That's something new to me. That line was not there so far, if I recall correctly. 

What does that mean? It looks like Ripple is in no hurry to speed up XRP distribution...


Thats about 3Bxrp/year or @ 0.005 about 15M $/year Not in a hurry but no need for higher valuation as well
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I am not sure if it is possible to make hundreds of billions today by selling software licenses of Ripple Connect and selling integration services, probably not.

But when XRP reaches dollar parity, then Ripple immediately has a nice $50 billion asset on their books...

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6 minutes ago, Duke67 said:

when XRP reaches dollar parity, then Ripple immediately has a nice $50 billion asset on their books

at $20 that'll be only two times apple's current market cap. Is twice the market cap of a company selling a mobile phone too ambitious for a company that redefines money?

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7 minutes ago, Duke67 said:

I am not sure if it is possible to make hundreds of billions today by selling software licenses of Ripple Connect and selling integration services, probably not.

But when XRP reaches dollar parity, then Ripple immediately has a nice $50 billion asset on their books...

One transaction costs only 0.00025 ripple. With 1 ripple, you can make 4000 transaction for more than million dollars transaction.  And let's assume we have 23,376,267 transaction a day, then it is about 5844 ripples only we need. Man, we have long way to go to reach a dollar.  Am I making sense? Or talking in wrong way? 

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2 minutes ago, winthan said:

One transaction costs only 0.00025 ripple. With 1 ripple, you can make 4000 transaction for more than million dollars transaction.  And let's assume we have 23,376,267 transaction a day, then it is about 5844 ripples only we need. Man, we have long way to go to reach a dollar.  Am I making sense? Or talking in wrong way? 

Remember that if XRP's value gets higher, transaction fees and reserves tend to decrease, so this is not what would XRP price anyway. Demand generated by utility to financial (and maybe other?) services are the real drivers IMO. I really hope the world goes for digital assets, this would be very cool and enable interoperability to very high levels.

The fact that they were able to set a foreseeable timeline suggests to me a maturity on the plans for XRP.

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Just now, RafOlP said:

Remember that if XRP's value gets higher, transaction fees and reserves tend to decrease, so this is not what would XRP price anyway. Demand generated by utility to financial (and maybe other?) services are the real drivers IMO. I really hope the world goes for digital assets, this would be very cool and enable interoperability to very high levels.

The fact that they were able to set a foreseeable timeline suggests to me a maturity on the plans for XRP.

Ripple is working for Interledger, hope that will make huge demands, otherwise we are done with fiat money of ripple token. 

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So, for the next 5 years, Ripple Inc. will distribute only 14.4 billion XRP out of their current 64.4 billion stash?! Few questions come to mind.

How much of that will be distributed to Market Makers as part of the incentive program?

How much of that will be shared with FIs?

How much of that will be consumed through processing transactions on RCL as part of spam protection?

They are not planning to get rid of their stash in any significant way for at least the next 5 years. This distribution amount means that they will continue to be, by far, the largest holder of XRP and therefore exercise complete control over the price (i.e. depress prices by selling more if XRP appreciates too much). So we are likely to see current conditions persist. XRP's price, at least for the next 5 years, will never be allowed to fluctuate by organic market demand and supply as long as Ripple Inc. acts as a central bank for this market. 

I wish I could share @lucky's speculation that they want to keep the lion's share of an asset they believe will appreciate in value, but another possibility is for me to kiss goodbye any dream I had of retiring within the next 5 years if ever.

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17 minutes ago, Dizer said:

How much of that will be distributed to Market Makers as part of the incentive program?

 

What I would like to know too. 

10 Billion would be good. But if it's something like 100 million then that would suck. 

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25 minutes ago, Morty said:

What I would like to know too. 

10 Billion would be good. But if it's something like 100 million then that would suck. 

If 100 million gets the ball rolling... At 5 times higher price level (which is where we are heading pretty soon if you ask me), that's still a lot of money. It should be an incentive, not free money. A gentle push to the ball might be enough incentive.

Maybe, just maybe, there is a wicked plan to only release the MM paper on the next big bubble (of the 500% dimension), and they're waiting for that bubble, to put some extra fire under it to kick out the ceiling.

:smoke:

Edited by lucky

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I think this is great news, we now know some of their distribution plan and what they expect to happen in the next 5 years, but I don't think their intent is to sell in order to keep the price down, I think their selling based on weekly trade volume still applies as well as any other existing lock-up agreements with partners... There have been no distribution wallets since July 13th that I have seen, so as of now they are not selling XRP on the market for whatever reason, we'll see how long this lasts. 

We now have a supply outlook, let's just hope the demand picks up, which if they believe demand or sales will absorb around 15 billion XRP in the next five years and they keep the remaining 50 billion? They can't control demand though, so it could go quicker :) 

According to the excerpt below, this sounds like they are done selling XRP on the market...

To this end, we currently plan to distribute XRP primarily through business development deals, incentives to liquidity providers who offer tighter spreads for payments, and selling XRP to institutional buyers interested in investing in XRP. If market conditions permit, we expect our company to hold approximately 50 billion XRP by the end of 2021. This schedule is indicative and discretionary.

Edited by rippleric

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